Meaning ● Data-Driven Compensation in the SMB sector constitutes a strategic system leveraging organizational data, performance indicators, and market analytics to inform decisions concerning employee salaries, bonuses, and incentives; essentially, it’s applying quantifiable insights to determine workforce remuneration. ● Implementing such a compensation model often involves automation of data collection, analysis, and reporting, thereby reducing human bias and ensuring consistency across the organization, especially pertinent for high-growth SMBs. ● The ultimate aim is to align employee motivation and performance with overall business objectives, which can improve talent retention, productivity, and profitability.
